Behind on property taxes in DFW? What it costs, and how to sell before a tax sale

What back taxes cost, month by month

Texas property taxes are generally due by January 31 and delinquent on February 1 (Comptroller). From there the cost climbs on a schedule set by Tax Code §33.01:

When	What’s added	The rule
February 1	A 6% penalty and 1% interest	§33.01(a), (c)
Each month after, through June	Another 1% penalty and 1% interest	§33.01(a), (c)
July 1	The penalty totals 12%, and many taxing units add a collection fee of up to 20%	§33.01(a), §33.07, §6.30(c)
Every month after that	Another 1% interest, with no cap	§33.01(c)

On a $6,000 tax bill, that’s about $1,080 in penalty and interest by July 1, plus up to $1,416 more in collection fees. A taxing unit doesn’t have to wait until July. It can sue to foreclose on the house any time after the taxes go delinquent (§33.41).

Check this before you sell

If you’re 65 or older, disabled, or qualified for a disabled veteran exemption, and the house is your homestead, you can defer the taxes by filing an affidavit with the appraisal district (§33.06). Penalties stop during a deferral, and interest drops to 5% a year. It might solve the problem without a sale. The tax lien stays on the house during a deferral, so the deferred taxes and interest get paid from the sale at closing.

How the sale clears the taxes

1. You sign a purchase contract, and the title company orders a tax certificate showing every taxing unit’s balance.
2. At closing, the title company pays the back taxes, penalties, interest and fees out of the price, like any other lien.
3. It also pays any mortgage, and what’s left is yours.

On all three of our numbers, the tax payoff is its own line, so you can see what you keep.

Path	When it usually wins with back taxes
Cash	A tax suit has been filed, the debt is growing, or the house needs work
List	Taxes are behind but no suit is filed, and the house shows well
Creative: fix-then-list	It needs work to bring the list price, and there’s time before a suit

If the house already sold at a tax sale

The former owner can still buy it back. For a homestead or farmland, the right lasts two years from the date the buyer’s deed is recorded, at a premium of 25% in the first year and 50% in the second. For other property, it’s 180 days (§34.21). Talk to a real estate attorney first if you’re in that window.

Questions people ask

Can I sell my house if I owe back property taxes?

Yes. The taxes are a lien on the house, and the title company pays them from the sale at closing. The price has to cover the taxes and any mortgage.

Will the taxing units take a payment plan instead?

If the house is your homestead and has a homestead exemption, the tax office has to offer an installment plan when you ask, unless you had one in the last 24 months (§33.02). That plan runs 12 to 36 months in monthly payments. For other property, the tax office can offer a plan but doesn’t have to. Call the county tax office that sends your bill and ask before penalties grow. The Areas we serve page links each county’s tax office.

What if I can’t afford the taxes because my value jumped?

Protest the value. The deadline is generally May 15 or 30 days after the appraisal notice, whichever is later. Property taxes in DFW walks through the protest and the evidence that works.

Do you buy houses with a tax suit already filed?

Yes. Paying the taxes, penalties and interest, plus the suit’s costs and fees, at closing resolves it. Send us the suit papers so the title company can get the payoff from the attorney handling it.